Dahlman Rose Lowers Price Target on National-Oilwell Varco (NOV), But Still Allows For 30% Upside

Dahlman Rose is maintaining its Buy rating on shares of National-Oilwell Varco (NYSE: NOV) as the company reported orders of $2.28 billion in Q1.

The firm reports that with the 31 deep water rigs and 45 jackups that have been ordered since October 1, 2010, as well as the approximately 44 options outstanding, it thinks that NOV can replicate this order rate in coming quarters.

Margins in the quarter fell slightly to 26.2% while management indicated that it expects them to be in the low 20% range for the remainder of the year. As a result the firm is lowering its FY11 and FY12 EPS estimates from $4.15 and $5.35 to $4.06 and $5.15.

Due to its new estimates the firm is lowering its price target $4 to $100, which still allows for a 30% upside to the stocks current price.

Dahlman Rose comments that, "Although NOV has moved significantly from its low, we think considerable upside remains. We see several more years of improving earnings beyond its anticipated year of strong EPS improvement in 2012. With this and NOV's other strengths, we believe the stock should trade at a marginal premium to the market and to the oil service group."

For more ratings news on National-Oilwell Varco click here and for the rating history of National-Oilwell Varco click here.

Shares of National-Oilwell Varco closed at $76.98 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Etsy upgraded to buy at BofA on durable growth, buyback potential
• Nutanix (NTNX) PT Raised to $80 at Oppenheimer Into EPS
• Flowers Foods (FLO) Misses Q2 EPS by 3c; Offers Guidance